No guarantees for SA's motor industry
The Competition Commission’s plan to increase black involvement in after-sales vehicle service is laudable but flawed, say motor companies and dealers
Attempts by the Competition Commission to throw open the vehicle sales and service industry to more black participants are misleading and dangerous, say opponents. The commission says its proposed code of conduct for competition in the SA automotive industry will increase the number of black players, increase consumer choice and drive down vehicle ownership costs. It claims the current industry model, which allows motor companies to decide who may service vehicles under warranty and which replacement parts may be used, is discriminatory and uncompetitive. A final draft of the code was published in August and the deadline for submissions expired at the end of October. The commission is giving no hint of when it plans to implement the code. Mark Dommisse, chair of the National Automobile Dealers Association (Nada), says the commission has ignored almost every industry input and seems hellbent on implementing the code as soon as possible. Though it will start life as a voluntary code, ...
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